Corporate Governance
GOVERNANCE
Accompany Every Sustainability Journey
Corporate governance is the most important factor in maintaining the trust of stakeholders and the sustainability of the Company’s business as a public company. The application of GCG principles will lead the Company to more significant and sustainable growth. The GCG principles are as follows:
Transparency
Providing timely, relevant, accurate, and easily accessible information to all stakeholders as part of the Company’s efforts to uphold the principles of transparency and maintain objectivity in business operations.
Accountability
Outlining a framework for accountability, clearly defining the roles and responsibilities of the Board of Commissioners, Board of Directors, and employees, also align with the Company’s vision, mission, values, and strategy.
Responsibility
In line with the Company’s commitment to organizational responsibility, we sincerely ensure compliance with the law and apply the principle of prudence.
Independency
The Company minimizes conflicts of interest in management and operational activities by ensuring that various positions of members of the Board of Commissioners and Board of Directors do not affect their ability to carry out their responsibilities within the Company.
Justice
The Company treats all stakeholders fairly and ensures all shareholders have access to Company Information equally.
Energy Mitra Investama (EMI)
Risk Management
In their daily business activities, the Company and its Subsidiaries are exposed to various risks. The main risks faced by the Company and its Subsidiaries arising from financial instruments are credit risk, market risk (i.e. foreign exchange risk), and liquidity risk. The following is an explanation related to the Company’s risk management on the risks owned by the Company.
Credit Risk
The Company and its Subsidiaries are exposed to credit risk in relation to the financial guarantees provided to banks by the Company. The maximum exposure of the Company in this case is the maximum amount that must be paid by the Company if the guarantee is withdrawn. Therefore, the Company and its Subsidiaries have and implement policies and procedures for granting credit to ensure careful credit evaluation and active supervision of accounts receivable. The Company and its Subsidiaries manage the credit risk associated with deposits in banks by monitoring reputation, credit rating and limiting the aggregate risk of each party to the contract.
Foreign Exchange Rate Risk
The Company implements a hedging policy for loans denominated in foreign currencies whose interest rates have been determined in advance to reduce financial turmoil due to exchange rate volatility or changes in market interest rates. In implementing the hedging policy, the Company uses derivative financial instruments, such as cross currency swaps as part of its asset and liability management activities to protect against foreign currency risk and interest rate risk where transactions in currencies are recorded at the rates of exchange prevailing at the time the transactions are made.
Liquidity Risk
Liquidity risk is the risk that the Company and its Subsidiaries cannot meet their obligations when they fall due. Management evaluates and closely monitors cash inflows and cash outflows to ensure the availability of funds to meet the payment needs of maturing liabilities. In general, the need for funds to pay off short-term and long-term liabilities that are due is obtained from sales to customers.
Sustainability Risk
The Company has identified various risks related to its business operations, namely the possibility of disturbing the environmental ecosystems at solat panel sites. In this context, the Company performs risk mapping on a consistent basis, and conduct business feasibility studies and environmental impact analysis at each development site or NRE project. This is one of the Company policies that acts as a reference in business development. Through the Public Relations Department, the Director of Operations consistently monitors and mitigates the operasional risks from the Company’s activities.
Anti-Corruption
The Company actively prevents corrupt behavior within our sphere of influence. This includes assessing corruption risks when conducting business and ensuring that internal procedures support the Company’s anti-corruption commitment. The Company is committed to conducting business in a professional, legal and appropriate manner.
Our reputation for integrity and excellence is upheld by careful observance of the highest conduct and personal integrity standards. This involves enforcing internal policies relating to our ethical conduct throughout interactions with colleagues, customers, and vendors.
We have established a framework to assess the ongoing developments and their potential impacts, to address our business operations and our people’s needs, adapt our technologies and approaches to help organizations navigate through the difficulty. Against this framework, our priorities are clear: to protect our team members, innovate for our customers, and rise to the challenge of supporting our communities. The Company will continue to increase the availability of af-ordable, clean, and sustainable energy for underprivileged Indonesian families, providing future generations with the opporunity to reach their full potential.
Internal Audit Charter
The Charter of the Company’s Internal Audit Unit is made in accordance with the Financial Services Authority Regulation Number: 56/POJK,04/2015 concerning the Establishment and Guidelines for the Preparation of Internal Audit Unit Charter and is determined based on the approval and authorization of the Board of Commissioners as stated in the Circular decision of the Board of Commissioners in lieu of the Company’s Board of Commissioners Meeting dated July 2, 2021.
Embracing the future of energy with us.
By harnessing the power of renewable energy and integrating it into our business model, we aim to be a driving force for positive change in the energy industry...